Allianz
is one of the leading global service providers in insurance, banking
and asset management. We serve our customers in more than 70 countries.
The solidity, service and competence of our Group are backed by the
commitment of our approximately 182,000 employees worldwide. In 2002,
we focused our efforts on improving our operating results. But the
improvements we made were overshadowed by the development the stock
markets, natural catastrophes and the need to bolster our claims reserves
in the U.S. We therefore had to report a loss of just under 1.2 billion
euros.
In the future, we want to become less dependent on economic trends
and the development of the capital markets. More efficient workflows
and thus lower costs, an improved claims ratio in the insurance business
and the sustained improvement of our performance in the banking business
are the foremost priorities of our operating units.
Property and casualty insurance
Premium income from property and casualty insurance was up 2.7 percent
to 43.3 billion euros. This represented 51.5 percent of total revenues.
The combined ratio decreased 3.1 percentage points to 105.7 percent.
Net income came to 7.2 billion euros. After restatement to eliminate
intercompany transactions, net income amounted to 3.4 billion euros.
Life and health insurance
Total life and health insurance revenues increased 18.9 percent to
40.1 billion euros. Almost half of these premiums derived from investment-oriented
products, mainly unit-linked life insurance. Despite the state of
the capital markets, we were able to increase revenues from these
products by 43.3 percent to 19.4 billion euros. We also improved our
expense ratio, but investment income declined sharply to 7.4 billion
euros, which in turn reduced net income to 19 (229) million euros.
Asset management
Allianz is one of the five leading asset managers in the world.Net
inflow to assets under management for third-party investors reached
43 billion euros. Nonetheless, assets managed for third parties decreased
by 59 billion euros or 9.5 percent to 561 billion euros. This was
due to falling stock prices and the depreciation of the U.S. dollar
against the euro. The operating result amounted to 495 million euros.
After deduction of acquisition-related expenses as well as taxes and
minority interests, the segment reported a loss as expected of 405
million euros.
Banking
The Group's banking business experienced an extremely difficult year.
The downturn in the capital markets and a weak, in some countries
crisis-prone economy, put a severe strain on our operating business.
Loan loss allowances had to be substantially increased, which tangibly
depressed earnings. These influences were so acute that the progress
achieved in cost management did not yet produce the expected results.
Administrative expenses at Dresdner Bank were cut by 12.3 percent.
The banking business reported a loss of 1.4 billion euros. |
